Indian Wire Rod Market Trade Log - Week 17, 2019
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MS Wire rod industry seems balanced at current scenario as average supply-demand resulted gradual change in prices amidst volatile billet market.
The mill owners in Raipur (Central India) reported average stock of Wire rod and improved demand for HB wire, which is pure form of Wire rod. As per them owing to labor shortage, the industry largely prefers HB wire rather than Wire rod as for process labor are limited available.
It should be noted that, to stretch sales the integrated plants & re-sellers in Raipur have offered healthy discounts on Wire rod than offering for HB Wire. Today, the trade discounts in Raipur for HB Wire observed at INR 700-800/MT, meanwhile in Wire rod it quoted at INR 1,000-1,100/MT.
-- Real Ispat(GK TMT) in Raipur has rolled-over Wire rod prices today and is reported at INR 37,900/MT for 5.5mm, ex-plant, excluding GST & trade discounts.
-- Offers by Prakash Industries hovering same at INR 37,900/MT ex-plant, Raipur & excluding GST.
Coming to Durgapur (Eastern India), where mills are still largely eyeing for rebars rather than Wire rod, even couple of mills claimed that sales closed for Wire rod as stocks are not available.
The trade reference prices in Durgapur is hovering at INR 36,600-37,300/MT for 5.5mm Wire rod & INR 36,200-36,800/MT for 12mm Rebar; both are ex-plant.
-- Adhunik Metaliks, one of the renowned mill in Durgapur reported offers for HB wire at INR 39,500/MT ex-plant and no stock for Wire rod as priority to complete dispatches of earlier orders.
-- Similarly its being learned that Rashmi Metaliks is not offering Wire rod in merchant market.
-- Offers for the blast furnace grade Wire rod by Electro Steels unaltered at INR 42,000/MT ex-plant(Bokaro, Jharkhand) & excluding GST.
-- Wire rod (5.5-6.0mm) export offers by large mills hovering at USD 540/MT & through the mid sized mills at USD 515-525/MT ex-mill, eastern India.
Statistics
India's Wire rod production continued on downtrend, as per recently released data by Joint Plant Committee (JPC).
As per data, India produced about 3,985,000 MT wire rod (non-alloy, including large & mid sized mill) in FY19, which is down by 3% as against 4,093,000 MT during FY18. Also the figures have come down as against 5,965,000 MT in FY17 & at 6,052,000 MT in FY16.
However, on monthly premises it grew sharply by both large & mid scale mills. The total non-alloy Wire rod production by mid size mills in Mar'19 stood at 155,600 MT as against 91,400 MT in Feb'19; up by 70.24% M-o-M.
